The S&P/ASX 200 Index (ASX: XJO) has started the week very strongly. In late morning trade the benchmark index is up 1.6% to 5,583.9 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they are dropping lower:
The Leigh Creek Energy Ltd (ASX: LCK) share price is down 5.5% to 8.3 cents. On Thursday the gas producer put its shares in a trading halt pending a material announcement in relation to a proposed capital raising. This morning the company launched an underwritten share purchase plan to raise just $1 million. It is raising the funds at a 20% discount to the five-day volume weighted average price on June 15.
The Lynas Corporation Ltd (ASX: LYC) share price is down 2% to $2.07. Investors have been selling the rare earths producer's shares after it revealed doubts over its U.S. activities. Last month the U.S. Department of Defense revealed that it plans to award a Phase I contract for a U.S. based Heavy Rare Earth separation facility to Lynas. Since then there have been objections to its construction. So much so, Lynas understands that plans are now on hold while political issues are addressed.
The Monadelphous Group Limited (ASX: MND) share price has fallen 3.5% to $10.35. This decline appears to have been driven by a broker note out of Ord Minnett. This morning the broker retained its lighten rating on the engineering company's shares and slashed the price target on them to $10.00. It has concerns over the impact of the pandemic on its operations.
The TechnologyOne Ltd (ASX: TNE) share price has continued its slide and is down a further 4% to $9.53. The enterprise software company's shares have come under pressure since the release of its half year update. Investors appear underwhelmed by its 6% lift in sales and profits during the six months ending March 31. Especially given the significant premium that its shares trade at.